Exam 7: Production and Growth

Suppose that over the past ten years productivity grew faster in Oceania than in Landia and the population of both countries was unchanged.What can we conclude?

Recently there have been violent protests against the World Bank and the World Trade Organization.The protesters argue that these institutions promote free trade and also encourage corporations in rich countries to invest in poor countries.The protesters contend that these practices make rich countries richer and poor countries poorer.How would economists feel about these protesters' views?

Which statement best defines the catch-up effect?

Read the article "What Makes a Nation Rich?" by Daron Acemoglu in your textbook,and write a one-page summary of the article (Times New Roman,size 12,double spaced).(You can find some guidelines on how to write a summary here: http: / / goo.gl / CncBb.)

Which organization tries to encourage the flow of investment to poor countries?

In ten years,when you are the owner of a major Canadian corporation,if your corporation opens and operates a branch in a foreign country you will be engaging in foreign direct investment.

Which statement is consistent with the catch-up effect?

Which has been happening to the market prices of most natural resources (adjusted for inflation)?

What is the difference between human capital and technology?

How large was the growth rate of Japan over the period 1890-2010?

In addition to investment in physical and human capital,what other public policies might a country adopt to increase productivity?

What is a production function? Write an equation for a typical production function,and explain what each of the terms represents.

What would increase productivity,everything else being the same?

Productivity can be found as number of hours worked divided by output.

One of the ten principles of economics is that people face tradeoffs.The growth that arises from capital accumulation is not a free lunch.What is the opportunity cost of that capital accumulation?

Technological innovations,by increasing productivity in manufacturing,have brought about some expected,as well as some unexpected,changes.A notable change is the disappearance of some occupations; another is,paradoxically,that people now do more unskilled work for themselves than they used to do a decade ago. a)Name a few occupations that have disappeared,or may disappear in the near future,as they are being replaced by machines. b)Name a few occupations that have disappeared or may disappear as a side effect of the general increase in productivity. c)How would economic growth force many people to do more housework by themselves?

Dawn looks over reports on five of her workers.Carol made 25 baskets in 5 hours.Peter made 30 baskets in 6 hours.Rob made 40 baskets in 10 hours.Jack made 55 baskets in 10 hours.Jacqueline made 21 baskets in 3 hours.Who has the greatest productivity?

In a market economy,when do we know that a resource has become scarcer?

Suppose that there are diminishing returns to capital.Suppose also that two countries are the same except one has less capital,and so less real GDP per person,than the other.Suppose that the saving rate in both countries increases from 5 percent to 6 percent.What would we expect over the next 10 years?

According to the traditional view,in what direction is the slope of the production function,with capital per worker on the horizontal axis and output per worker on the vertical axis?